HR 1244: Ad valorem tax; business enterprises; rate of assessment of 1,000 or more single family residential properties used for rental income; provisions - CA

Currently, Georgia's constitution limits how the General Assembly can classify and tax different types of property. This resolution proposes a constitutional amendment creating a new property subclass called 'business enterprise property,' covering real estate owned by a business enterprise, including private equity firms, that holds an interest in 1,000 or more single-family homes in Georgia used mainly to generate rental income. That property would be assessed and taxed at 100 percent of its fair market value, a higher rate than typical property tax assessments. Any tax proceeds collected would first have to go toward reducing property tax bills for homesteads (owner-occupied primary homes) in the same taxing jurisdiction before being used for anything else. The General Assembly would still need to pass separate general laws to define terms, set appraisal methods, and create an appeals process. Because this is a constitutional amendment, it must be approved by voters in a statewide referendum before taking effect.

• Creates a new constitutional property subclass called 'business enterprise property' for real estate held by large-scale landlords owning 1,000 or more single-family rental homes in Georgia.
• Sets the assessment and tax rate for this property at 100 percent of fair market value, higher than typical property assessment rates.
• Requires that tax proceeds from this property be used first to lower property tax bills on owner-occupied homes in the same taxing jurisdiction.
• Authorizes the General Assembly to pass laws letting the Department of Revenue use specific appraisal methods and create a separate appeals system for this property class.
• Sends the proposed constitutional amendment to Georgia voters for ratification or rejection in a statewide referendum.

Large business enterprises, including private equity firms, that own or hold interests in 1,000 or more single-family rental homes in Georgia; homeowners in taxing jurisdictions where such properties are located, who could see reduced property tax bills; the Department of Revenue, which would appraise this property; and Georgia voters, who must approve the amendment.

If approved by voters and implemented through follow-up legislation, large corporate landlords with big single-family rental portfolios would pay a notably higher property tax rate, and that extra revenue would go toward cutting property tax bills for regular homeowners in the same area rather than general government spending.

• Section 1 adds a new subparagraph (f.2) to Article VII, Section I, Paragraph III of the Georgia Constitution, creating the 'business enterprise property' classification.
• The new provision applies to businesses holding an interest in 1,000 or more single-family residential properties used primarily to generate rental income.
• Business enterprise property must be assessed and taxed at 100 percent of fair market value, unlike other property classes that may have exceptions.
• Tax proceeds must be used first to reduce homestead property tax bills in the same taxing jurisdiction before any other use.
• The General Assembly is authorized to pass general laws setting appraisal methods, appeal procedures, and enforcement penalties for this property class.
• Section 2 sets the ballot language for the statewide referendum asking voters to approve or reject the amendment.

1. 2026-02-09House Second Readers (House)
2. 2026-02-06House First Readers (House)
3. 2026-02-05House Hopper (House)

• Derrick McCollum (R, HD-030)Primary sponsor
• Mary Oliver (D, HD-084)
• Phil Olaleye (D, HD-059)
• Esther Panitch (D, HD-051)
• Joseph Gullett (R, HD-019)
• Chuck Efstration (R, HD-104)

• property taxes
• corporate landlords
• housing affordability
• constitutional amendment
• homestead tax relief